Science Industry Partnership

12 Jan 2022

ESFA Apprenticeship Agreement Update 11/01/22


The ESFA have updated the Apprenticeship Agreement for Employers.
The changes relate to the ongoing incentive payments that employers are eligible to apply for, and provide additional clarification around scheme eligibility.
A full summary of changes are set out below.

Schedule 2
Existing definitions amended:
Employer Incentive Scheme: means the arrangements entitled “Incentive Payments for Hiring a New Apprentice” as set out in the Funding Rules.

New definition added:
Third Scheme Period: has the meaning given to it in Section “Incentive Payments for Hiring a New Apprentice” of the Funding Rules and such period shall start on 1 October 2021 and end on the date given in the Funding Rules as amended from time to time.

Existing paragraphs amended:
1. An Employer that takes on an Apprentice in the circumstances specified in the sections in the Funding Rules entitled “Incentive Payments for Hiring a New Apprentice” may claim an Employer Incentive Payment in respect of that Apprentice.
9. If one or more of the Eligibility Criteria as set out in Paragraph 2 are not met in relation to an Apprentice, the Employer will not be entitled to the relevant Employer Incentive Payment. If the ESFA has already made the relevant Employer Incentive Payment, it will recover the payment in accordance with Paragraph 13.
16. The ESFA will not accept any new applications for Employer Incentive Payments any later than 2 months after the Scheme Period or the Second Scheme Period or the Third Scheme Period as appropriate has elapsed. For the avoidance of doubt, the ESFA will continue to make Employer Incentive Payments after the Scheme Period or the Second Scheme Period or the Third Scheme Period has elapsed in relation to Apprentices who meet the criteria set out in Paragraph 2.

New paragraph added:
12. The ESFA may at any time and at its sole discretion amend the end date of the Third Scheme Period by amending Section “Incentive Payments for Hiring a New Apprentice” of the Funding Rules.

If anyone has any questions or needs any further clarification please contact Strategic Apprenticeship Lead, Rachel Roby Rachel.roby@cogentskills.com

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